Bitcoin might fall once again if it fails to retain its average moving price
Bitcoin has undergone some turbulent times over the past couple of weeks. Currently, there are several speculations about the future prospects of crypto, but unfortunately, most of them are not even close to being positive. From reaching all-time new highs back in November 2021 to disintegrating into unbelievably low market value, Bitcoin has made the crypto market extremely volatile, and at a time when it could have shown its true potential as an inflation hedge and a valuable store of asset amid economic downturns. Experts say that these economic downturns are some of the most significant reasons why BTC and most other cryptocurrencies are plummeting. The market participants are in shock and might even get trampled on despite the following the suggestions and strategies recommended by crypto big shots. Recently, new reports have got investors to run away from BTC for their lives! Experts believe if the BTC price fails to achieve its 200-week moving average, then the token might experience macro price bottoms.
For new investors who are unaware of the technicalities behind a crypto’s moving average price, the moving average is basically a calculation that is used to analyze price points created over a series of averages in a complete price data set. In other words, it is simple like that will represent the closing of a cryptocurrency, which is averaged out over a period of time. Currently, the Bitcoin price is trading below its 200-week MA, and as the week is nearing an end, experts warn that if Bitcoin fails to trigger a bounce in its value, then it could lead to another 50% crash, but if Bitcoin successfully crosses its 200-week average, it might even cross US$50,000 and trigger a new bull run for the crypto.
Bitcoin is Stabilized Near US$20,000
Bitcoin’s price has bounced back to US$20k, but it originally went up as high as US$21k, but then faced resistance and retraced back. For Bitcoin, it is quite crucial to overtake its 200-week MA and at least land up somewhere near US$22,000 and utilize it as a support range. There are several predictions about bitcoin which demonstrates that the crypto might eventually cross US$23k and gain resistance around it. But several other skeptics believe that Bitcoin would dive further below and gain resistance to around US$8,000. But there are several factors that indicate that Bitcoin might not really disintegrate so soon.
Recently, Bitcoin wholecoiners experienced all-new highs as investors are accumulating BTC at an exponential pace over the past week. According to reports, the number of Bitcoin wallet addresses that contained one BTC or more increased by over 14,000. Also, the total number of ‘wholecoiners’ rose by almost 700,000. This price action was perpetrated at a time when the crypto is experiencing heavy losses. Analysts who monitor the movements of digital assets concluded as a joke that the token might end up losing all its value and land at US$0.
Investors Prepare for the Worst-Case Scenario
For the past several weeks, Bitcoin’s price has been declining at a rapid pace, taking down the hoard of other cryptocurrencies in the market. BTC’s present price movements were already questionable by the investors, who were or are already planning to sell off their investments. Even Bitcoin whales have concluded that the falling prices of the crypto demonstrate that it is impossible for the token to regain its lost market value. As investors continue to remain on edge due to all the negative headlines based on cryptocurrencies and the rising inflation, they are also not backing down on utilizing this opportunity to buy the dip. It surely might enhance the market relevance of Bitcoin to new highs once again. But eventually, all these efforts will go in vain if BTC fails to achieve its 200-MA and might eventually trigger a new recorded series of bearish price trends.
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